ISELIN, N.J., Dec. 4, 2007 (PRIME NEWSWIRE) -- SoftNet Technology Corp. (OTCBB:STTC) (German WKN:TG6) announced today that it had disposed of certain assets that will have a favorable impact on overall operations and cash flow.
The Company sold select accounts and contracts associated with the small business segment of the Company which was based in Atlanta, GA. The decision to divest these assets was based on the Company's decision to focus on its core business, IT Infrastructure consulting and project work, as well as the opportunities presented in the developing Application Delivery Practice.
"This was a decision that was made after thorough evaluation and consideration. While the Company still feels there is opportunity in the small business space, senior management felt strongly that the Company should focus on its core business, competencies and strengths. The small business operation relied on hardware as their primary sales point which is inconsistent with the Company's main mission, Professional Services, and had a negative affect on overall margins. Additionally, the small business operation was required a high labor content to maintain the operation. The labor savings, a reduction in 7 non-billable employees, associated with the divestiture will reduce the Company's monthly cash requirements. The sale will put pressure on the Q4 revenue target but the Company is optimistic it can recover the lost revenue by Q1 2008," said Jim Booth -- CEO.
The divested assets were sold to former members of the management team based in Atlanta and included a transfer of debt and other financial considerations.
SoftNet Technology Corp. is a Professional Services firm offering proven technology solutions to the enterprise and services provider market verticals. Through process and people, SoftNet has secured and delivered contracted solutions that maximize their clients' business value of their IT infrastructure investments. The growing team of highly qualified industry leading professional support the core deliverables as well as the expansion of SoftNet's services and solutions. These resources, along with the proven management team, have defined and brought to market nine practice specialties. SoftNet's North American footprint supports Fortune 500 commercial accounts, the education sector and Government agencies, and leveraging offices in New York/New Jersey, Philadelphia, and Atlanta.
For additional information regarding SoftNet and its capabilities and offerings, please visit us at our website (www.softnettechnology.com), or for Investor Relations, please contact the company directly at 908-212-1799, Option 7, or Jim Booth -- CEO.
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